NJ A4730

Businesses deploying generative AI to communicate with consumers for trade or commerce must provide clear verbal or written notice at the beginning of the interaction that the consumer is interacting with AI, not a human

The disclosure requirement applies when AI is deployed in a manner that would cause a reasonable person to believe they are communicating with a human

Generative AI is defined as technology trained on data, designed to simulate human communication through text, audio, or visual means, and generates non-scripted outputs with limited or no human oversight

Violations constitute unlawful practices under New Jersey's consumer fraud act, carrying penalties up to $10,000 for first offenses and $20,000 for subsequent offenses

Additional enforcement remedies include cease and desist orders from the Attorney General, punitive damages, and treble damages with costs awarded to injured parties